Henry Boot plc has completed the sale of its construction arm to a firm led by three of its former directors.
The deal was officially completed on 31 December, the parent firm said today (5 January).
The management buyout (MBO) of Henry Boot Construction (HBC) was originally announced last September, when the parent group confirmed a £4m all-share deal with PWS Construction Ltd.
At the time, Henry Boot said the divestment marked a strategic shift to focus on property development and housebuilding.
It added that HBC was no longer essential to the group’s medium-term growth plans and made a limited contribution to its earnings.
“The disposal will reduce the risk profile of the group and reduce group headcount by around 21 per cent,” Henry Boot told the Stock Exchange.
Derbyshire-based HBC generated revenue of £49.7m in the year to 31 December 2024 in its parent firm’s most recent published annual accounts, but the construction division posted an operating loss of £2.7m.
It now trades as HBC Construction Group under directors Lee Powell (pictured), James Smith and Christopher Weathers.
Major jobs completed by Henry Boot’s construction arm in 2024 included the £44m Heart of the City scheme in Sheffield and the £56m Cocoa Works residential scheme in York.
Ongoing work includes a £38m redevelopment of Rotherham Markets and a new library, due to finish in 2027.
The company expects to break even in 2025 with 94 per cent of the current year’s order book already secured, Construction News reported last year.
Henry Boot’s construction MBO announcement follows a series of ownership shifts in the contracting sector.
Vinci completed its acquisition of FM Conway in January 2025, for instance, and Sisk finalised the purchase of Farrans last November.
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